FASB proposes new fair value rules
July 04, 2026
FASB has proposed an update to accounting standards that would change how investment companies measure the fair value of equity securities with contractual sale restrictions.
Under existing guidance in FASB Accounting Standards Codification Topic 820, Fair Value Measurement, entities do not consider a contractual restriction on the sale of an equity security when determining fair value.
The proposed amendments would require investment companies to factor in these restrictions and disclose the associated discount.
FASB said the proposed revisions are intended to make investment company financial reporting more useful by aligning the fair value of restricted equity securities with the value market participants would assign to those shares.
The board encourages stakeholders to review and provide comments on the proposed ASU by Friday, July 17. Read more.
